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Business News/ Companies / Mytrah Energy looks for funding to start operating its solar projects soon
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Mytrah Energy looks for funding to start operating its solar projects soon

Vikram Kailas, MD, Mytrah Energy says the company wants to achieve financial closure of 380 MW of solar projects in the next 6-8 months

Mytrah also pans to tap debt of around Rs4,000 crore for these projects.Premium
Mytrah also pans to tap debt of around Rs4,000 crore for these projects.

Hyderabad: Renewable energy producer Mytrah Energy (India) Ltd is looking at raising 1,000-1,200 crore of equity for the solar projects it plans to make operational soon.

The company wants to achieve financial closure of 380 MW of solar projects in the next 6-8 months, said Vikram Kailas, managing director, Mytrah Energy.

Mytrah also pans to tap debt of around 4,000 crore for these projects. In 2014-15, the company had raised $130 million through bonds purchased by Goldman Sachs, Merrill Lynch International and Apollo Funds.

The independent power producer now has 580 MW of wind energy plants operational and plans to triple the operational capacity in the next 18 months. “In the worst case scenario, we will triple the size of the operational portfolio in the next two years. The current work would translate to revenues of around 550 crore this year and 2,000 crore in three years," said Kailas.

“We have a strong project portfolio of 3,000 MW, that is, projects for which the technical studies have been completed. This apart, in the construction bucket of projects we have 1,000MW, of which we have achieved financial closure for 620 MW and will raise the required funds for the 380 MW in the next 6-8 months," he said.

India has been ambitiously aiming to produce 40% of its total energy requirement through renewable sources by 2030, with the push more towards solar energy. Right now, of the total energy generation in the country, only about 6% is from clean energy sources like solar, wind and biomass.

“The fundamental growth in capacity in the last few years has been mainly due to policies. There is not much happening in the open market where the government incentives do not apply. The solar installation growth will significantly depend on the government’s push which is estimated to be 12 GW (gigawatt) per year. But this is a high competition market and the margins have been eroding which is not attractive for companies in the long term," said Bharat Bhushan Agrawal, senior analyst, India solar, Bloomberg New Energy Finance.

A solar power plant typically costs 5-6 crore per MW and wind power plant 6.5 crore. “The smallest plant we have is 15 MW. But the new ones we are doing are not below 50 MW and we look to do at least 75-100 MW. Once we have around 2000 MW operational, it would be predominantly wind, but 30-40% of it will be solar," Kailas said. The company’s existing operational wind farms are now spread over 10 projects and six states.

In 2014 India’s solar power production was 900MW and 1GW (1000MW). Whereas, wind power production was 2.3GW in 2014 and 1.7GW in 2013.

“India’s power policy is not commensurate with the target. The way things are working, achieving a 3000-4000MW target every year is sustainable, but not beyond that considering the bureaucracy, lack of coordination between centre and state and other challenges like permissions. Perhaps one of the reasons why e-commerce is growing rapidly is it does not have to deal with such challenges," Kailas said.

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Published: 10 Nov 2015, 11:17 AM IST
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